Startup! This is a sacrosanct word for many meritorious fresh graduates and experienced managers, looking to not only experiment but actually, dive into a ‘lifestyle’ is equated to adventures in la la land.

From getting a chance to be part of a rising, thriving or merely surviving, but never boring nor conventional working environments, a free hand on creatively pursuing problem solving, flexibility of all sorts from work timings to even the dress code, to coming to work with the inspired feeling that the whole team, not being too large generally is united and chasing a shared vision.

This is completely in contrast to the corporate culture where you can get boxed into cement compartments from the type of work you get to tackle, to corporatized almost mechanical human interactions, politics and favouritism, lack of any united shared vision and a feeling of serving the masters/ bosses living the life of a glorified bounded labour.

While all of this makes the startup world exciting and enticing over a corporate or even other professional jobs per se, an undeniable truth is that there exists a high level of attrition.
And, reality check? A lot of employees quit startups.

What makes startup culture attractive is what destroys it. The very arguments which make the startups attractive are many a time the reason why employees decide to leave. How can that be though? Here are some points that we as a startup feel any startup must notice with an objective of nipping the problems in the bud when the signs arise.

When the excitement fades, and the employees start echoing -

“This is no different than working at a firm, MNC, handling operations for a corporate! Can we just go home already? No?” *Silent Shrugs*

From having to order meals post 12 at night to losing what was probably the biggest attraction to initially when deciding to work at a startup – flexible hours; it is employee and labour psychology 101 that being overworked is counterproductive to any organisation.

In cases where a startup begins to notice signs like “Even after working for 10-12 hours a day, why do I sense that I am not able to utilise the employees’ time to the fullest” or “Where the hell are we lacking when we are already committing all our employees’ days to the work”, the answer pretty much lies in the questions.

A Standford University Study shows that in cases where overwork has been observed there is generally a case for the average productivity to have decreased just about till the point that if there were normal working hours the average productivity would remain the same or only get better.

In other words, grinding for longer hours is cool if you are a founder, but making your employees at a startup grind for hours which are in excess of a 50 hour work week is the death of productivity, creativity

A study conducted at the University of Pennsylvania shows that subjects who had only obtained 4 to 6 hours of sleep for 2 weeks showed cognitive performance deficits of a person who had not slept for 3 days consecutive days!

That is to say, their ability to perform normal cognitive tasks such as paying attention and reacting to stimuli becomes reduced substantially, so one can only imagine crucial work like solving difficult problems or thinking creatively is thrown out of the window.

Existential crisis- From being overworked to realising I didn’t sign up for this. One of the biggest reasons for quitting a startup-

“We are just another *Insert Competitors/ other companies name generally looked down upon*, this is different from what we planned to do!”

At a startup the united common vision is everything. It motivates employees to feel part of a tribe which is unique and hence everyone believes in it.

Imagine Tyler from fight club (it happens to be a cult movie, for the uninitiated). After Tyler is done fixing the rules for fight club, and effectively making random, overworked and frustrated people believe that they are set out on achieving something beyond what the mundane life offers, goes out of his way and posts a boosted ad campaign on Facebook. The fight club could disband faster than it formed for the sole reason that, “this is different from what we planned to do!”

Not stating in any way that ads on Facebook are a bad strategy, the issue is that the founder diverged from the core vision, breaking literally the only rule which made the team feel special.

The founder’s vision is crucial. Unfortunately, the world is cruel, and the law of nature says adapt or perish.

Sometimes As the startup expands, the vision is often lost in the process of achieving short-term goals. Small compromises hit every individual employee differently.

The only true solution might sound utopian but inclusive growth is the way to go. While adapting to the dynamic business environment, the employees’ perspectives and feedbacks must be shown to be valued and taken into account.

People are more likely to generate their own ideas, to contribute with enthusiasm, to keep slogging when there are frequent and long-term changes becomes unpleasant, and also to experience a sense of camaraderie and togetherness.

MONEY.MONEY.MONEY! Bro I have bills to pay!

Nothing can be done about money when you are a bootstrapped startup. Shed a tear and adopt a different approach.

REWARD, RECOGNIZE and REVIEW OFTEN.

Everyone likes kudos, none more so than those who work hard and give their all. startups founders need to communicate with their people to find out what makes them feel good (for some, it’s a raise; for others, it’s public recognition) and then to reward them for a job well done.

Mostly happiness comes in small doses in a startup's journey. Leaders need to celebrate each time things go positive (however small they may be). This will keep the team motivated to strive for bigger success.

The middle name of whatever your startup might be called has to be Uncertainty. With all the mergers, acquisitions, fundings, and bankruptcies that continuously take place in this world, job and financial security is another reason why people chose to leave their alluring startup jobs once they make a serious personal or financial commitment. This of course, if the venture cannot match their expectations or share a definitive roadmap for career progression.

What about post growth? All the success in the world, will not guarantee talent from escaping if the culture itself changes completely

When startups start bringing in the decent amount of business, it is commonly seen that there are sweeping changes to every aspect of the working environment. This includes the people (numbers increase naturally) as well as new physical surroundings/ bigger working spaces while also expanding to different cities.

The core of a startup is only an abstract idea, it is a feeling in terms of spirit and emotions.

Therefore to keep intact the culture of the work environment, rather than taking a quantitative approach, the best way is simply to actively observe the human interactions. Yes! As absurd as it might sound to give importance to the grapevine communication, that is literally where the culture is made.

Do not delegate. This is not a managers’ job, this should be done the by the very top level management and done with a smile while they are at it. It is the founders’ prerogative to engage and ensure that the culture develops in a certain way to balance the old with the new.

The very subtle things matter the most while engaging in a bid to influence the culture at a growing and successful startup. Again, it is the feeling, the spirit, the warmth, the level of concern in people's voices. That's the stuff that's the indicator of engagement.

Never let an employee remind you even the most basic promises of the past. The Richard Branson model of doing business is shockingly applicable to the Indian startup ecosystem.
Who comes first? Not the clients, not the product or service itself, neither the investors! It is your cherished people/ the employees who make or break a startup business. Look out for those who work towards your success while aiming to reach your goals to avoid losing them.

Nobody appreciates being told what to do and how to go about your job every time a mistake is made or the time taken is slightly more than what was anticipated.

This holds true especially in a startup where the idea is to do anything and everything with a tinge of creativity and maybe even a healthy dose of giggles. Give your teammates the responsibility of a task and let them decide how they want to execute it. You will not be disappointed trusting them and regardless that is just not the right strategy to employ in business management.

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Most Consulted Startup Advocates

Choose from our most consulted lawyers across India and get instant legal advice.

Advocate Sheila P Rao practices at Karnataka High Court. She enrolled with the Bar Council of Karnataka in 2009. She is member of the Karnataka Bar Association. She was a university topper in both LLB and LLM and currently managing a law firm specialised in the area of corporate law, IPR, legal services for small and entry level businesses. She has helped numerous start-ups and continuous her patronage toward them.
Her primary focus lays in common legal requirements for start-ups companies like Incorporation, Trademark, Patent Application, Legal Agreements, Accounting Services, Filing, Legal Advisory and any other legal advice.
She has experience of 8+ years in the legal profession and providing services. She provides services in fair and transparent manner with result oriented approach. She is very supportive and friendly to her clients both professionally and ethically. She is consistent and precise in identifying strength and weakness of the matter.

Advocate Chirag Shah Practices at Bombay High Court and District Court, Mumbai. He enrolled with the Bar Council of Maharashtra and Goa in the year 2008. He is a member of the High Court Bar Association.
His specializations and practice areas are criminal laws, civil laws, property related matters, arbitration, taxation related matters and matters involving corporate laws, divorce & alimony related matters, landlord/tenant related matters and drafting and vetting of various agreements and documents. Advocate Chirag Shah and his team of legal experts provide services in the legal field at the domestic as well as the international level. Their prime focus is to simplify the legal complications and hurdles of the clients by adopting the best possible ways in-accordance with the prevailing laws. Their legal brain provides the result of any legal issues of the clients at the best level.
He has experience of 9+ years in the legal profession and providing services. He provides services in fair and transparent manner with result oriented approach. He is very supportive and friendly to his clients both professionally and ethically. He is consistent and precise in identifying strength and weakness of the matter.

Ranbir Singh is a competent and experienced lawyer and is based out of Gurgaon and has been an active part of the legal fraternity for over 13 years now.
Ranbir's legal services span from Commerce contracting related matters to Wills and Estate Planning. Apart from this, he also deals with contract drafting, reviews and negotiation for high value transactions.
Ranbir Singh practices at the Hon’ble District Court Gurgaon. He got himself enrolled with the Bar in 2004.

Advocate Shyamsunder Mishra is a Sundergarh based lawyer and has been practising law since 1988. He has been providing legal and advisory services as an independent lawyer. Advocate Shyamsunder Mishra got enrolled with the Bar Council in the year 1988.
He has acquired his legal education from Magadh University and holds extensive experience in working in the most complex areas of Criminal Defence, Consumer Protection, Cheque Bounce, Property Real Estate Law and General Legal. He holds experience in efficiently handling varied cases and often makes appearances across District Court Sundergarh.
He avidly believes in achieving the objectives of his client with compassion and accurate advocacy. Advocate Shyamsunder Mishra is known for providing timely and responsive legal services for his clients by providing them with the most expeditious legal course of action.

Advocate Udit provides services in the various field of civil laws, tax laws, corporate laws, family laws, consumer cases, landlord/tenant matters, arbitration matters, matrimonial related matters and drafting and vetting of various agreements and documents.He has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired many years of professional experience in providing legal consultancy and advisory services.He provides services in a fair and transparent manner with result oriented approach. He is very supportive and friendly to his clients both professionally and ethically. He is consistent and precise in identifying strength and weakness of the matters.
Advocate Udit Seth enrolled with the Bar Council of Delhi in 2014. He is a member of the Delhi Bar Association.

Advocate Anubhuti Mishra is a Delhi based lawyer and has been practising law since 2013. She has been providing legal and advisory services as an independent lawyer. Advocate Anubhuti Mishra got enrolled with the Bar Council in the year 2013.
She has acquired her legal education at Hidayatullah National Law University and holds extensive experience in working in the most complex areas of Banking,Corporate Law, Employment, General Legal, Legal Agreement Drafting, Startups. She holds experience in efficiently handling varied cases and often makes appearances across, Competition Commission of India, Delhi High Court,Orissa High Court.
She avidly believes in achieving the objectives of her client with compassion and accurate advocacy. Advocate Anubhuti Mishra is known for providing timely and responsive legal services for her clients by providing them with the most expeditious legal course of action.

Top Consulted Startup Advocates

Advocate Sheila P Rao practices at Karnataka High Court. She enrolled with the Bar Council of Karnataka in 2009. She is member of the Karnataka Bar Association. She was a university topper in both LLB and LLM and currently managing a law firm specialised in the area of corporate law, IPR, legal services for small and entry level businesses. She has helped numerous start-ups and continuous her patronage toward them.
Her primary focus lays in common legal requirements for start-ups companies like Incorporation, Trademark, Patent Application, Legal Agreements, Accounting Services, Filing, Legal Advisory and any other legal advice.
She has experience of 8+ years in the legal profession and providing services. She provides services in fair and transparent manner with result oriented approach. She is very supportive and friendly to her clients both professionally and ethically. She is consistent and precise in identifying strength and weakness of the matter.

Advocate Chirag Shah Practices at Bombay High Court and District Court, Mumbai. He enrolled with the Bar Council of Maharashtra and Goa in the year 2008. He is a member of the High Court Bar Association.
His specializations and practice areas are criminal laws, civil laws, property related matters, arbitration, taxation related matters and matters involving corporate laws, divorce & alimony related matters, landlord/tenant related matters and drafting and vetting of various agreements and documents. Advocate Chirag Shah and his team of legal experts provide services in the legal field at the domestic as well as the international level. Their prime focus is to simplify the legal complications and hurdles of the clients by adopting the best possible ways in-accordance with the prevailing laws. Their legal brain provides the result of any legal issues of the clients at the best level.
He has experience of 9+ years in the legal profession and providing services. He provides services in fair and transparent manner with result oriented approach. He is very supportive and friendly to his clients both professionally and ethically. He is consistent and precise in identifying strength and weakness of the matter.

Ranbir Singh is a competent and experienced lawyer and is based out of Gurgaon and has been an active part of the legal fraternity for over 13 years now.
Ranbir's legal services span from Commerce contracting related matters to Wills and Estate Planning. Apart from this, he also deals with contract drafting, reviews and negotiation for high value transactions.
Ranbir Singh practices at the Hon’ble District Court Gurgaon. He got himself enrolled with the Bar in 2004.

Advocate Shyamsunder Mishra is a Sundergarh based lawyer and has been practising law since 1988. He has been providing legal and advisory services as an independent lawyer. Advocate Shyamsunder Mishra got enrolled with the Bar Council in the year 1988.
He has acquired his legal education from Magadh University and holds extensive experience in working in the most complex areas of Criminal Defence, Consumer Protection, Cheque Bounce, Property Real Estate Law and General Legal. He holds experience in efficiently handling varied cases and often makes appearances across District Court Sundergarh.
He avidly believes in achieving the objectives of his client with compassion and accurate advocacy. Advocate Shyamsunder Mishra is known for providing timely and responsive legal services for his clients by providing them with the most expeditious legal course of action.

Advocate Udit provides services in the various field of civil laws, tax laws, corporate laws, family laws, consumer cases, landlord/tenant matters, arbitration matters, matrimonial related matters and drafting and vetting of various agreements and documents.He has been practicing and handling cases independently with a result oriented approach, both professionally and ethically and has now acquired many years of professional experience in providing legal consultancy and advisory services.He provides services in a fair and transparent manner with result oriented approach. He is very supportive and friendly to his clients both professionally and ethically. He is consistent and precise in identifying strength and weakness of the matters.
Advocate Udit Seth enrolled with the Bar Council of Delhi in 2014. He is a member of the Delhi Bar Association.

Advocate Anubhuti Mishra is a Delhi based lawyer and has been practising law since 2013. She has been providing legal and advisory services as an independent lawyer. Advocate Anubhuti Mishra got enrolled with the Bar Council in the year 2013.
She has acquired her legal education at Hidayatullah National Law University and holds extensive experience in working in the most complex areas of Banking,Corporate Law, Employment, General Legal, Legal Agreement Drafting, Startups. She holds experience in efficiently handling varied cases and often makes appearances across, Competition Commission of India, Delhi High Court,Orissa High Court.
She avidly believes in achieving the objectives of her client with compassion and accurate advocacy. Advocate Anubhuti Mishra is known for providing timely and responsive legal services for her clients by providing them with the most expeditious legal course of action.

Top Legal Startup Queries

I have decided to set up an e-commerce business in collaboration with various start-up designers and a third party delivery service. I would like to ask: 1. What kind of legal steps should I take into consideration? 2. What clauses should a legal contract with a designer include so that there is no scope of copyright infringement or intellectual property theft?

I am planning to start a roadside 'thela' chain keeping sanitation compliances in mind. The whole solution will be technology-enabled where I will be connecting buyers and listing my thelas and their locations for home delivery. I got to know that running thela is not legal and it runs on the mercy of Policewalas and bribery. Hence I need proper legal advice so that I can start this business at scale by becoming fully legally compliant.

We have 4 founders. 2 are putting capital and they get 55% Equity. 2 people are given 45% equity because of their skill sets. Can we award 45% sweat equity (I see limit was raised to 50% of paid up capital)? Also, how can we avoid tax implications? Will it be seen as an income for the beneficiaries of Sweat Equity?

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